Refinance Calculators

The second category of mortgage calculators are those used to assist in the refinancing decision. During the past 3 to 5 years, the U.S. economy has experienced some of the lowest mortgage interest rates in decades, along with skyrocketing real estate values based, in part, on the boom of the dot com years.

In addition, there has been a marked increase in unemployment in some sectors and a continually growing increase in consumer debt. As a result, many people have found (and continue to find) themselves in situations where they are cash-strapped.

Yet, with substantial equity in their real estate holdings, primarily their main residences, many persons have wrestled with the question of what to do with equity sitting in their homes. A typical decision that property owners grapple with is whether or not to refinance to a lower mortgage rate. Is the cost of refinancing is worth it? And, if an owner does decide to refinance, should they start with another 30-year mortgage, or, possibly, consider moving to a shorter duration loan, such as a 15-year loan?

Others have wrestled with whether or not it makes sense to take out a consolidation loan. In other words, should they take equity from the home by way of refinancing or a home equity loan in an effort to consolidate debt? Or is it more sensible to pay off higher interest consumer debt with (sometimes tax-deductible) equity from the mortgage? Note: These questions also have tax implications which should be discussed with a financial advisor before a final decision is made.

Some current mortgage holders are evaluating ways to accelerate payoff of their mortgages through extra payments of principal each month. Some already have an ARM and want to figure out the APR of their existing loan. Still others desire a tool that will simply help them manage and track existing loans by providing an easy tool for figuring loan amortization or analyzing the remaining principle after a number of payments. The mortgage calculator can effectively estimate all and many more such figures.